Way to privatisation! Govt likely to sell its stake in Central Bank & Indian Overseas Bank

June 8: The Narendra Modi government may soon finalise plans to sell Centre’s stake in Central Bank of India and Indian Overseas Bank (IOB) as part of its mega privatisation initiative announced by Finance Minister Nirmala Sitharaman in the Union Budget 2021 in February. Govt’s think tank NITI Aayog has recommended these two names for privatisation. However, sources told the Times of India that Bank of India (BoI) may also be a potential candidate for sale.

As per the process, NITI Aayog recommends names, these are reviewed by the inter-ministerial group of officers and then by a group of ministers, before seeking approval from the Union Cabinet. Before finalisation of the plan, the government will also consult with the RBI as the law and regulations provide a special dispensation for state-run entities in several areas.